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Season’s greenings

This could be the year that tips the scales for the first time in favor of online spending over in-store spending for the holiday shopping season.

Every year we turn to our ShopTalk Holiday Survey to find out how and where consumers plan to shop during the holidays. We ask respondents questions like what form of money they’ll use to spend, what type of gifts they prefer to keep or return, and even how current events like recent data breaches have affected their shopping habits.

Interested in downloading the complete survey?

Where is the scale tipping?

According to our survey, Millennial (50%) and Gen X (39%) consumers are more likely to be spending online or using a mobile app this year.

Furthermore, 38% of consumers surveyed say that they will spend more online/using a mobile app than they did last year.

What’s more, only 3% of all consumers say their spend will decrease online or through a mobile app this year.

For businesses selling to consumers, and financial institutions serving them both, these results should help you prepare for the online and in-store rush of holiday shopping. Consider how you accept payments, maximize online shopping carts and in-store experiences, and ultimately drive conversions of more happy customers.

Let the Key Takeaways and companion stories below help guide you this holiday season.

Encrypt all data that is stored on your servers, or don’t store it all

Run constant diagnostic tests

In-store Merchants

Keep your technology, including card readers, updated frequently.

Limit remote access logins to your server, as they leave you more vulnerable

Look out for in-store theft, including shoplifting, as well as any behaviors or distractions that could leave a customer’s physical card at risk

Minimize the data you collect

And encrypt everything

Financial Institutions

Alert your customers that they have the option to regularly check for security alerts either on your website or through your mobile app—that includes those of you who allow customers to set purchase notifications, spending limits and the like. Your customers will appreciate your anticipating their needs and heightening awareness.

Story 2:

Mobile and online shopping is taking over this holiday season—are you ready for the rush?

43% of consumers plan to purchase holiday gifts online or via a mobile app this holiday season. Millennials are the most likely to choose this channel, while boomers and retirees are the least likely

38% of consumers say they’ll do more online and mobile app shopping this year, compared to last year

Credit cards remain the most preferred payment method for online and mobile app purchases. Retirees (60%) have the highest preference for them than any other generation

Gather customer intelligence and insights so you can use your mobile app as marketing tool to proactively offer advertisements to shoppers based on their purchase history

Make your web checkout experience more seamless for shoppers by implementing wallet options on the product page, easy login options on the cart page, autofill capabilities for address and card number, and scan card options.

Ensure every element of your payment systems speak to one another—your mobile app rewards, online checkout and in-store POS process should all feel like one seamless experience for the customer. And, if you haven’t done this—it’s too late for the season, so place it on your 2018 priorities list.

Story 3:

What’s your return policy? Here’s what consumers will do with unwanted gifts this year.

Though it might be taboo, regifting is an age-old practice. The survey tells us it’s alive and well. These are the gifts you should avoid pushing on your customers this holiday season. Their friends and family will thank you later.

45% of consumers cop to regifting in the past, with Millennials being the most likely (49%) to regift and retirees being the least likely (22%)

Though 74% of consumers say they like receiving gift cards as a holiday gift, 31% admit gift cards are the top items they regift

Home décor (32%) is the top gift most likely to be regifted this year

19% of consumers say they’ve regifted alcohol and food in the past

What can you do?

Make sure your return policy is clear and fair to customers—they’re more likely to shop with a business they feel has their best interest in mind

Ensure your gift cards are displayed visibly for shoppers who are confused about what to purchase for friends and family

Make gift cards aesthetically appealing and properly branded, and offer deals and rewards for shopping during a specific period post-holidays. Gift cards are a great way to build loyalty and grow your customer base

The online survey was developed by Vantiv and Socratic Technologies and conducted by Socratic Technologies through an online consumer panel in October 2017. Results are based on 1,001 consumer respondents.